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Governments must protect those in ‘precarious’ jobs: Editorial

The trend towards precarious employment — temporary, contract, and part time positions — and away from fulltime jobs of any kind, never mind those with benefits and pensions, is growing.

New report from McMaster University and the United Way of Toronto confirms that 52 per cent of workers in the GTA and Hamilton are in precarious jobs.

Mon., May 25, 2015

Tanvi, a young, temporary worker in a call centre would do anything for a fulltime job. But like the majority of workers in the GTA and Hamilton, the college-educated woman is trapped in what is known as “precarious employment.”

As a new report from McMaster University and the United Way of Toronto confirms, fully 52 per cent of workers in the GTA and Hamilton are in precarious jobs: temporary, contract or part-time positions. Tanvi is one of them. “I’m tired of temping,” she says. “I just want some stable employment.”

She may be out of luck. As the report and a series of reports by the Star’s Sara Mojtehedzadeh make clear, the trend towards precarious employment and away from fulltime jobs of any kind, never mind those with benefits and pensions, is growing.

For example, there has been a 33-per-cent increase in the number of temporary workers in Toronto since 2004, and just a 12-per-cent increase in permanent workers during the same period. In fact, 41 per cent of work in Ontario is now done outside a full-time, permanent relationship with a single employer.

Finding work is just part of the problem. Once employed in precarious jobs, some are often denied overtime pay, sick pay, benefits, regular work schedules, job security and even a minimum wage. Indeed, temporary workers make on average 33 per cent less per hour than fulltime employees, while part-time workers make 40 per cent less.

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As a result, many work more than one job to make ends meet.

The news is not good for workers — or the economy. That’s why all levels of government need to get involved to make temporary, contract and part-time work, well, less precarious.

What’s needed? Three recommendations from the McMaster/United Way study would make a good start:

First, the Ontario government needs to beef up its Employment Standards Act to protect employees. Simply requiring advance scheduling notice for workers or sick pay would be good first steps.

Second, various levels of government need to combine forces to create accessible, affordable universal day care to enable workers to take on fulltime or other jobs they may find.

Third, the provincial government needs to partner with businesses to create more vital training opportunities for precarious workers so they can work their way up the employment ladder.

While the cost may seem prohibitive for governments and employers alike, the social and economic cost of not acting is more worrisome — and potentially much higher.

As the McMaster/United Way report points out, workers in precarious employment:

Are almost twice as likely to report poor mental health than those in secure employment.

Are almost 55 per cent more likely to report they are often depressed as a result of work.

Are almost six times more likely to delay starting a relationship and three times more likely to delay having children.

The study warns that, without action, precarious work will “not only affect the ability of people to build stable and fulfilling lives, but it will threaten our region’s capacity to develop a competitive workforce.”

A recent study from TD Bank economists is even more dire in its warning of the economic fallout from precarious work: “Precarious employment is a serious issue and clearly negative for the Canadian economy. Without the assurance of the income security that comes along with stable employment and hours, and the matching wages and benefits, consumers lack the confidence to spend. Profits remain below where they could be, reducing the confidence of investors to invest.”

That’s why it’s imperative that the Ontario government update the 1968 Employment Standards Act as quickly as possible. It has promised to complete a review within 18 months.

Meanwhile, though, the horror stories pile up. One temporary worker interviewed by the Star was fired after asking for a day off when he sliced his thumb open on the job. Another was fired after asking to be made a permanent employee after working for nine months as a temp in one job. Another has been working in a temp job for five years, for which he is paid less than his permanent colleagues, has no benefits — and no recourse through the Employment Standards Act to be hired on fulltime.

None of the stories seems possible in Ontario. But they are the tip of the iceberg, since most precarious workers never complain to the Ministry of Labour. That’s because the employment act currently offers no protection against unjust dismissal. So most employees – who are identified to their employer by the ministry the moment they make a complaint – choose a pay cheque over their rights.

While none of these recommendations will put an end to precarious employment, they could go a long way toward helping workers lead more stable home and work lives, bolster economic competitiveness, and protect workers’ rights.

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